Gavaskar will probably take over as BCCI chief for the IPL 7 “bat-arounds”(Whack-a-mole) as CSK and Rajasthan Royals shutdown could see sentiment spillover to cash equities and a 30 edition IPL in the UAE as suggested by the Supreme Court a body blow to the sport. India Inc in the meantime continues to enjoy a brief respite from discussions of continued troubles for India as investors return to one of the world’s deepest markets, markets staying the course now at 6600 levels, keeping gains and sentiment firmly taking out 6500 straddles to new bulls at likely 7000 levels in at least tail risk hedges for bears who would be indeed not averse to a sentiment turnaround from these levels.
The SC action is a desired one as any other sport league worldwide like NFL has gone thru similar phases and thier popular nature is likely to transcend their unlisted nature and submit enough relevance to market flows as well, challenging other news flows like the general elections.
In the more likely scenario, markets will however cross into 6800 levels with relative ease, making complex F&O strategies a non starter except for those ready to bear additional transaction costs in unwinding such strategies, selling 6600 puts now however not a guaranteed profit transaction and thus likely to entice those willing to go with a proposed “done and done” rally trend, an exercise usually made unlikely in deep markets by the presence of more balanced pushes and pulls, especially in this segment for Indian markets determined by market inflows, predominantly FII inflows which continue to signal a better placement of India vis a vis other Asian and Emerging Markets as investors exit Korea and China portfolios after a vain 4 year wait for a global turnaround in sentiment
Most of us commentators would indeed continue to prefer a single post election 2014 rally than a continued token into election weeks from April 7 and 17 right till counting day on May 09